Hire Purchase or not?

cookieliz

I am about to purchase a second hand car but not sure of the best way to finance this. I can afford to pay with money from an ISA which would save on interest but I am worried that I wont have the protection that I would have if I took H.P. Can anyone give me advice please ?

standupguy

If you take out the hp you will get some comfort from the fact that the Finance company are jointly liable for the quality of the vehicle with the supplying dealer (under section 75 of the Consumer Credit Act).

However you will be paying extra fees on top of the interest charges.

I think the interest and fee savings outweigh the hp.

I think if you pay over a £100 deposit on your credit card and the balance from your savings you would still get the consumer protection under section 75 (this time with the credit card company)?

cookieliz

I had not thought about using a credit card for the deposit in fact it may be a good idea to get a credit card with 0% for a few months and pay more towards the balance instead of using all of my savings.
Many thanks for your reply.